MGX Minerals Initiates Geophysical Survey at Utah Petrolithium Project, Blueberry Unit, Paradox Basin
November 08 2017 - 8:30AM
InvestorsHub NewsWire
MGX Minerals Initiates Geophysical Survey at Utah Petrolithium
Project, Blueberry Unit, Paradox Basin
VANCOUVER, BC -- November 8, 2017 -- InvestorsHub NewsWire --
MGX Minerals
Inc. (“MGX” or the “Company”) (CSE:
XMG / FKT:
1MG / OTCQB: MGXMF) is pleased to report
the Company has engaged Dawson Geophysical Company (“Dawson”) of
Houston, Texas to conduct a detailed seismic geophysical survey
over the Blueberry Unit within the Company’s Paradox Basin
Petrolithium project in Utah (“Paradox Basin” or the “Project”).
Preparations are underway and Dawson expects to commence the survey
shortly. The goal of the survey is to identify subsurface
geological formations and structures favorable to the accumulation
of oil, gas and mineral brine deposits.
The Blueberry Unit consists of 80,380 acres of unitized Federal,
State and Private lands. MGX controls the overwhelming majority of
mineral claims within the Blueberry Unit inclusive of lithium and
other industrial minerals. The Blueberry Unit is part of the
Company’s large landholding within the Paradox Basin and Lisbon
Valley, which consists of over 110,000 acres of oil and gas leases
and approximately 118,000 acres of largely overlying mineral
claims. Brine content within the Lisbon oilfield have been
historically reported as high as 730 ppm lithium (Superior Oil
88-21P).
The Project is also host to a National Instrument (N.I) 51-101
estimated prospective resources (the “Estimate”) consisting of
leasehold and royalty interests in San Juan County, Utah and Miguel
County. Colorado. The estimate was prepared by the Ryder Scott
Company, L.P. (“Ryder Scott”), an independent qualified reserves
evaluator within the meaning of N.I. 51-101 - Standards of
Disclosure for Oil and Gas Activities (“NI 51-101”), with an
effective date of June 30, 2017. The Estimate was prepared in
accordance with N.I. 51-101 and the Canadian Oil and Gas Evaluation
Handbook.
Estimated Gross Volumes
Unrisked Prospective (Recoverable) Hydrocarbon Resources
Leasehold Interest in San Juan County, Utah and San Miguel County,
Colorado of
MGX MINERALS INC.
As of June 30,2017
Formation |
ULTIMATE RECOVERY OIL –
MMBO |
ULTIMATE RECOVERY GAS –
BCF |
COC* |
LOW |
BEST |
HIGH |
LOW |
BEST |
HIGH |
|
Paradox Clastics |
CB2 |
41.799 |
59.498 |
85.324 |
33.441 |
47.602 |
68.266 |
0.075 |
CB3 |
41.915 |
60.641 |
85.833 |
33.536 |
48.517 |
68.671 |
0.075 |
CB4 |
12.766 |
18.745 |
26.692 |
10.213 |
14.781 |
21.355 |
0.075 |
CB5 |
33.185 |
48.065 |
68.841 |
26.548 |
38.453 |
55.074 |
0.075 |
CB6 |
6.603 |
9.607 |
13.874 |
5.283 |
7.686 |
11.100 |
0.045 |
CB7 |
1.892 |
2.735 |
3.948 |
1.514 |
2.188 |
3.158 |
0.032 |
CB8 |
19.108 |
27.525 |
39.079 |
15.287 |
22.022 |
31.264 |
0.068 |
CB9 |
11.452 |
16.671 |
23.711 |
9.162 |
13.337 |
18.970 |
0.068 |
CB10 |
14.565 |
21.169 |
30.088 |
11.652 |
16.936 |
24.073 |
0.068 |
CB11 |
2.021 |
2.929 |
4.244 |
1.617 |
2.344 |
3.396 |
0.032 |
CB12 |
9.352 |
13.609 |
19.525 |
7.482 |
10.887 |
15.620 |
0.045 |
CB13 |
9.333 |
13.158 |
19.297 |
7.468 |
10.815 |
15.438 |
0.045 |
CB14 |
3.195 |
4.621 |
6.634 |
2.556 |
3.697 |
5.308 |
0.045 |
CB15 |
6.455 |
9.432 |
13.633 |
5.164 |
7.546 |
10.908 |
0.045 |
CB16 |
2.752 |
3.987 |
5.768 |
2.202 |
3.190 |
4.615 |
0.045 |
CB17 |
3.770 |
5.390 |
7.835 |
3.016 |
4.313 |
6.269 |
0.040 |
CB18 |
4.673 |
6.728 |
9.572 |
3.739 |
5.383 |
7.658 |
0.045 |
CB19 |
16.690 |
24.226 |
34.542 |
13.358 |
19.381 |
27.636 |
0.068 |
CB20 |
2.931 |
4.253 |
6.118 |
2.435 |
3.402 |
4.895 |
0.040 |
CB21
(Cane Creek) |
35.336 |
51.338 |
73.971 |
28.272 |
41.073 |
59.177 |
0.097 |
CB22 |
5.635 |
8.261 |
11.957 |
4.508 |
6.609 |
9.566 |
0.045 |
Leadville |
1.000 |
2.100 |
4.000 |
153.000 |
231.700 |
341.600 |
0.066 |
*COC – Chance of
Commerciality = Chance of Discovery * Chance of
Development
MGX holds a 75% working interest in the Project with the remaining
interest primarily controlled by a private Utah corporation (the
“Paradox Partner”). The Paradox Partner has been engaged by MGX as
subcontracted operator of the Project.
The Paradox Basin has been noted by the USGS as having one of the
largest undeveloped oil and gas fields in the United States
(“Assessment of Oil and Gas Resources in the Paradox Basin
Province…”; USGS; 2011; Click Here).
According to production statistics, as reported by the Utah
Department of Natural Resources, Oil, Gas and Mining Division,
cumulative lifetime production within Lisbon Valley oilfield,
contiguous with the Blueberry Unit, has totaled 51.4 million
barrels of oil as of April 2017 (“Oil Production by Field, Utah
Department of Natural Resources, Division of Oil, Gas and Mining”;
February 2017; Click
Here).
MGX may decide to advance its petrolithium projects into
production without first establishing mineral resources supported
by an independent technical report or completing a feasibility
study. A production decision without the benefit of a technical
report independently establishing mineral resources or reserves and
any feasibility study demonstrating economic and technical
viability creates increased uncertainty and heightens economic and
technical risks of failure. Historically, such projects have a much
higher risk of economic or technical failure.
Qualified Person
The technical portions of this press release were prepared and
reviewed by Andris Kikauka (P. Geo.), Vice President of Exploration
for MGX Minerals. Mr. Kikauka is a non-independent Qualified Person
within the meaning of National Instrument (N.I.) 43-101
Standards.
About MGX Minerals
MGX Minerals is a diversified Canadian resource company with
interests in lithium, magnesium and silicon assets throughout North
America. Learn more at www.mgxminerals.com.
Contact Information
Jared Lazerson
President and CEO
Telephone: 1.604.681.7735
Web: www.mgxminerals.com
Neither the Canadian Securities Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Canadian Securities Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains certain statements that
constitute forward-looking statements or information
("forward-looking statements") including the volume of resources.
Although MGX believes that the expectations reflected in such
forward-looking statements are reasonable, such forward-looking
statements have been based on factors and assumptions concerning
future events that may prove to be inaccurate. Those factors and
assumptions are based upon currently available information
available to the Company. Such statements are subject to
known and unknown risks, uncertainties and other factors that could
influence actual results or events and cause actual results or
events to differ materially from those stated, anticipated or
implied in the forward-looking statements. As such, readers
are cautioned not to place undue reliance on the forward-looking
information, as no assurance can be provided as to future results,
levels of activity or achievements.
MGX believes that the material factors, expectations and
assumptions reflected in the forward-looking statements are
reasonable but no assurance can be given that these factors,
expectations and assumptions will prove to be correct. The
forward-looking statements included in this press release are not
guarantees of future performance and should not be unduly relied
upon. Such information and statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking information or statements including, without
limitation: inaccurate estimation of MGX’s prospective resources;
risk associated with the Company having no history of operations or
earnings including, but not limited to, any oil and gas operations;
and certain other risks detailed from time to time in MGX’s public
disclosure documents including, without limitation, those risks
identified in this press release, and in MGX’s annual information
form, copies of which are available on the Company’s SEDAR profile
at www.sedar.com.
Furthermore, the forward-looking statements contained in this
document are made as of the date of this document and, except as
required by applicable law, MGX does not undertake any obligation
to publicly update or to revise any of the included forward-looking
statements, whether as a result of new information, future events
or otherwise. The forward-looking statements contained in
this document are expressly qualified by this cautionary
statement.
Resource Definitions
Resources encompass all petroleum quantities that originally
existed on or within the earth's crust in naturally occurring
accumulations, including Discovered and Undiscovered (recoverable
and unrecoverable) plus quantities already produced. "Total
Resources" is equivalent to "Total Petroleum Initially In-Place".
Resources are classified in the following categories:
Total Petroleum Initially In-Place ("TPIIP") is that quantity
of petroleum that is estimated to exist originally in naturally
occurring accumulations. It includes that quantity of petroleum
that is estimated, as of a given date, to be contained in known
accumulations, prior to production, plus those estimated quantities
in accumulations yet to be discovered.
Discovered Petroleum Initially In-Place ("DPIIP") is that
quantity of petroleum that is estimated, as of a given date, to be
contained in known accumulations prior to production. The
recoverable portion of DPIIP includes production, reserves, and
Contingent Resources; the remainder is unrecoverable.
Contingent Resources are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations using established technology or technology
under development but which are not currently considered to be
commercially recoverable due to one or more contingencies. Economic
Contingent Resources are those contingent resources that are
currently economically recoverable. Sub-Economic Contingent
Resources are those contingent resources that are not currently
economically recoverable, provided that there should be a
reasonable expectation of a change in economic conditions within
the near future that will result in them becoming economically
viable.
Undiscovered Petroleum Initially In Place ("UPIIP") is that
quantity of petroleum that is estimated, on a given date, to be
contained in accumulations yet to be discovered. The recoverable
portion of UPIIP is referred to as Prospective Resources and the
remainder is unrecoverable.
Prospective Resources are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development
projects. Prospective Resources have both an associated chance of
discovery and a chance of development.
Unrecoverable is that portion of DPIIP or UPIIP quantities
which is estimated, as of a given date, not to be recoverable by
future development projects. A portion of these quantities may
become recoverable in the future as commercial circumstances change
or technological developments occur; the remaining portion may
never be recovered due to the physical/chemical constraints
represented by subsurface interaction of fluids and reservoir
rocks.
The range of uncertainty of estimated recoverable volumes may
be represented by either deterministic scenarios or by a
probability distribution. Resources are provided as low, best and
high estimates as follows:
Low Estimate: This is considered to be a conservative estimate
of the quantity that will actually be recovered. It is likely that
the actual remaining quantities recovered will exceed the low
estimate. If probabilistic methods are used, there should be at
least a 90 percent probability (P90) that the quantities actually
recovered will equal or exceed the low estimate.
Best Estimate: This is considered to be the best estimate of
the quantity that will actually be recovered. It is equally likely
that the actual remaining quantities recovered will be greater than
or less than the best estimate. If probabilistic methods are used,
there should be at least a 50 percent probability (P50) that the
quantities actually recovered will equal or exceed the best
estimate.
High Estimate: This is considered to be an optimistic estimate
of the quantity that will actually be recovered. It is unlikely
that the actual remaining quantities recovered will exceed the high
estimate. If probabilistic methods are used, there should be at
least a 10 percent probability (P10) that the quantities actually
recovered will equal or exceed the high estimate.
Certain resource estimate volumes disclosed herein are
arithmetic sums of multiple estimates of DPIIP or UPIIP, which
statistical principles indicate may be misleading as to volumes
that may actually be recovered. Readers should give attention to
the estimates of individual classes of resources and appreciate the
differing probabilities of recovery associated with each class as
explained under this Resource Definitions section.
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